Behavioral Logic Of The Securities Investment Funds And Market Impact

The Security Investment Fund (Mutual Fund) comes into being when the market economy has developed to a certain phase, a great deal of investment capital has been accumulated, and the diversification of the financial instruments has been achieved. Related studies show that when the Security Investment Fund develops to a certain phase, it will play a positive role in the development of the national economy and the stability of the market.Because the investors of the fund lay a great emphasis on its medium-term and long-term investment yields, they will not be puzzled by rumors or strive to make fast buck, which favors the stability of the stock market. But it is unrealistic and even dangerous to take the fund as an instrument of rescuing and supporting the stock market. We must realize that the fund is a double-edged instrument which always acts by the following principle: it will be bought in the bull market and will be sold in the bear market.In China, the market always focuses on the function and position of the Security Investment Fund in the security market. With the scale of the Fund enlarged, it has its impact on the effective allocation of financial recourses, the improvement of the investor structure of the security market, and the innovation of financial systems. While some government officials rely on the fund to stabilize the stock market, the reality doesn't fully meet their expectations.This paper conducts an in-depth empirical analysis of the behavioral characteristics of China's Security Investment Fund and its impact on the market. The paper consists of five chapters. The first chapter introduces the goal and structure of the paper; the second chapter applies the game theory to the behavior of the Security Investment Fund; the third chapter analyses the investment strategy and concept of the Security Investment Fund; the fourth chapter makes an empirical analysis of the impact of the Security Investment Fund on the market; and the fifth chapter puts forward some suggestions regarding the improvement of the Security Investment Fund based on the analysis of the previous four chapters.From the empirical analysis, I understand that since the Security Investment Fund is under the impact of various factors, its transaction behavior inclines to be identical. Thus it favors both the upward and downward movement of the stock market. A unilateral emphasis on the impact of the Security Investment Fund on the security market is ex parte. Therefore, our government should fully recognize the dualism of the Security Investment Fund so as to promote its advantages and avoid its adverse impacts.